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HomeMy WebLinkAbout03/22/2022 - Study Session / Regular MeetingCITY OF NEWPORT BEACH City Council Meeting Minutes Study Session and Regular Meeting March 22, 2022 I. ROLL CALL - 4:00 p.m. Present: Mayor Kevin Muldoon, Mayor Pro Tem Noah Blom, Council Member Brad Avery, Council Member Joy Brenner, Council Member Diane Dixon, Council Member Duffy Duffield, Council Member Will O'Neill H. CURRENT BUSINESS SS1. Clarification of Items on the Consent Calendar In response to Council Member Brenner's question regarding Item 3 (Code Amendments Pertaining to Raft -Ups, Live-Aboards, On -Shore Moorings, and Other Miscellaneous Provisions), City Manager Leung announced that the item will be continued to the April 12, 2022 City Council meeting. SS2. National Library Week Proclamation Mayor Muldoon read the proclamation and presented it to Library Services Director Hetherton, Library Board of Trustees Chair Paul Watkins, and Library Board of Trustees Member Doug Coulter. Chair Watkins recounted his library experiences as a youngster, announced the theme "Connect with Your Library," noted the progress in the library system, and announced Library Services Director Hetherton's upcoming retirement. Library Services Director Hetherton thanked the City Council for its continued support of library programming and Trustee Coulter expressed his enthusiasm for his time at the library. SS3. Financial Evaluation and Framework for Future Inclusionary Housing Ordinance (PA2022-045) Community Development Director Jurjis, Principal Planner Murillo, and Kathy Head from Keyser Marston and Associates, Inc. utilized a presentation to review the financial evaluation and future framework for inclusionary housing, the background, inclusionary housing definition and the reasons for having it, focus areas, affordability, annual housing production count, State Density Bonus Law, the City's inclusionary ordinance, financial evaluation parameters, pro forma analysis, evaluation tests, the previously repealed ordinance, supportable requirements and analysis for rental and ownership projects, Southern California examples, possible ordinance options, and a proposed timeline. In response to Council Member Dixon's questions, Community Development Director Jurjis provided an example of how the Density Bonus Law works with State laws, discussed the General Plan and Inclusionary Ordinance, and highlighted concerns by the Building Industry Association (BIA) regarding in -lieu fees. In response to Council Member O'Neill's question, Community Development Director Jurjis concurred that currently no Orange County city is in compliance with the California Department of Housing and Community Development (HCD). Council Member O'Neill further expressed concern regarding the Housing Element compliance requirements, utilizing an inclusionary housing ordinance, and the potential rezoning of the City. Volume 65 - Page 275 City of Newport Beach City Council Meeting March 22, 2022 In response to Council Member Brenner's questions, Community Development Director Jurjis indicated that the City Council was previously in favor of adopting an inclusionary housing ordinance, questioned the timing, and noted an opportunity for in lieu fees with a threshold to provide flexibility to applicants and the necessity of all options to reach compliance. He further relayed that developers will be forced to use State Density Bonus Law if the City delays implementation of an inclusionary housing ordinance, provided examples of potential projects using the State Density Bonus Law with no inclusionary amount, challenges related to high land values and penciling projects with no density boost, and emphasized the reasons for having an inclusionary number in place prior to the City rezoning. Council Member Brenner expressed concern for delaying implementing an inclusionary housing ordinance. In response to Council Member Avery's questions, Kathy Head explained that the in -lieu fees are tied to the affordability gap resulting from the inclusionary requirement, indicated the analysis is conservative, balanced, and avoids a constraint to housing, and agreed with lower numbers if the City desires. Council Member Avery expressed his concern for market volatility and questioned the housing crisis. In response to Council Member Dixon's questions, Community Development Director Jurjis stated that, without an ordinance, a lack of affordable housing development is predicted unless the developer wants to take advantage of the State Density Bonus Law. Principal Planner Murillo reviewed State Density Bonus Law amendments throughout the years with the most recent update being last year. Community Development Director Jurjis clarified the difference between available housing opportunities and what is remaining in the General Plan, reported approximately 350 housing units remaining in the Airport area with 11,000 housing units to be added Citywide after rezoning and updates to the Land Use Element, predicted 90% of developers will use the State Density Bonus Law to mitigate expenses, concurred that market forces play a part in this, and noted escalated construction, labor costs, and challenges for inexperienced developers. Council Member Avery relayed the challenges of making the Housing Element work, discussed problems created by the State Density Bonus Law, and expressed concerns related to parking, a supportive market, building costs, and keeping expectations low. Mayor Pro Tem Blom noted the premature nature of adding an inclusionary amount before receiving feedback from HCD on the Housing Element, projects using the State Density Bonus Law, in -lieu fees, building preferences, timing, and the need for more information. Council Member O'Neill recognized incentives for super -dense housing and used Irvine as an example. In response to his questions, Principal Planner Murillo shared the State Density Bonus Law slide to explain how the State Density Bonus Law and in -lieu fees work and concurred with the recognition of incentives and challenges related to housing unit goals for the next three years. In response to Council Member Brenner's question, Principal Planner Murillo indicated that, with the absence of an inclusionary housing requirement, developers can choose not to incorporate affordable housing units, making the City unable to mandate units or in -lieu fees. With an adoption of an inclusionary housing ordinance, he stated that developers who choose to not include affordable housing units would pay the City an equivalent inclusionary housing fee but State law provides a very -low income incentive for rental units even with no inclusionary ordinance. Community Development Director Jurjis pointed out that an ordinance is necessary to require or provide an option for in -lieu fees, and noted the slow growth measure (Greenlight) and additional housing opportunities after City rezoning, updates, and voting. Volume 65 - Page 276 City of Newport Beach City Council Meeting March 22, 2022 Council Member Dixon suggested moving forward slowly, recapped the working relationship with developers and the use of development agreements, explained the use of collected fees for the community's benefit, and expressed concern for parking and green space loss with the State Density Bonus Law. In response to her questions, Community Development Director Jurjis confirmed that fees can be negotiated in a development agreement until City rezoning, pursuant to the current code and a future impact fee option, and Council Member O'Neill confirmed his interest in having more time for discussion after the City receives comments on the Housing Element from HCD, noted Greenlight constrictions, and expressed uncertainty for meeting housing goals. In response to Council Member Avery's question, Principal Planner Murillo disclosed that very low-income units are the easiest way to maximize the State Density Bonus Law and incentives, and detailed the incentives for development costs, waivers, parking rates, and square footage requirements. In response to Council Member Brenner's questions, Community Development Director Jurjis confirmed that development agreements can be used for community benefit, discussed affordable housing funding requirements until City rezoning, and noted there are approximately 100 projects in the City that do not require development agreements. As a result, Council Member Brenner expressed her support for delaying implementing an inclusionary housing ordinance. Nancy Scarbrough supported applying in -lieu fees to current housing projects, implementing a 7% or 8% inclusionary amount, and moving quickly with more studies. Jim Mosher noted State Density Bonus Law incentives for affordable housing development, a 30% affordable housing requirement for the 1300 Bristol project (Item 15), questioned who contracted with Keyser Marston and Associates, Inc. and the cost of the report, and expressed confusion for how the State Density Bonus Law and inclusionary ordinance work together, in -lieu fees, and the analysis results. Charles Klobe stated that the former Marriott Hotel project will not provide for affordable housing units and will instead pay the in -lieu fee, no General Plan amendment is required, an ordinance is required to collect in -lieu fees, and expressed the opinion that having an inclusionary housing ordinance demonstrates the City's commitment to affordable Housing development. Larry Tucker stated that one policy will not fit all areas and supported the City Council taking more time to have discussions with property owners. Mayor Muldoon received consensus by the City Council to delay implementing an inclusionary housing ordinance at this time, predicted a noncompliant outcome for the Housing Element, and mentioned influences of the free market. In response to Council Member Dixon's questions, Principal Planner Murillo explained how the 30% affordable housing requirement in the 1300 Bristol project resolved a development constraint in the Fourth Cycle Housing Element and stated that no other area is subject to the requirement. In response to Council Member Brenner's question, Community Development Director Jurjis announced that he has the authority to mandate in -lieu fees by way of the Director's Determination. III. PUBLIC COMMENTS ON AGENDA AND NON -AGENDA ITEMS —None Volume 65 - Page 277 City of Newport Beach City Council Meeting March 22, 2022 City Attorney Harp announced that the City Council would adjourn to Closed Session to discuss the items listed in the Closed Session agenda, read the titles, and indicated City Clerk Brown would be recusing herself on Item IVB due to personal financial interests. IV. CLOSED SESSION A. CONFERENCE WITH LABOR NEGOTIATORS (Government Code § 54957.6): 1 matter Agency Designated Representatives: Grace K. Leung, City Manager, Barbara Salvini, Human Resources Director, and Charles Sakai, Esq., Negotiators. Employee Organizations: Newport Beach Police Management Association (NBPMA) and Newport Beach Lifeguard Management Association (NBLMA). B. CONFERENCE WITH LABOR NEGOTIATORS (Government Code § 54957.6): 1 matter Agency Designated Representatives: Kevin Muldoon, Mayor, and Noah Blom, Mayor Pro Tem. Unrepresented Employee: Leilani I. Brown, City Clerk, and Aaron C. Harp, City Attorney. V. RECESSED - 5:16 p.m. VI. RECONVENED AT 5:45 P.M. FOR REGULAR MEETING VII. ROLL CALL Present: Mayor Kevin Muldoon, Mayor Pro Tem Noah Blom, Council Member Brad Avery, Council Member Joy Brenner, Council Member Diane Dixon, Council Member Duffy Duffield, Council Member Will O'Neill VIII. CLOSED SESSION REPORT - None IX. INVOCATION - Pastor David Manne, Calvary Chapel of Costa Mesa X. PLEDGE OF ALLEGIANCE - Council Member Brenner XI. NOTICE TO THE PUBLIC XII. CITY COUNCIL ANNOUNCEMENTS AND ORAL REPORTS FROM CITY COUNCIL ON COMMITTEE ACTIVITIES Council Member O'Neill: • Attended the Transportation Corridor Agency (TCA) Board meeting, Newport Beach Baseball Association Opening Day, and the Corona del Mar Residents Association (CdMRA) meeting with Council Member Brenner Council Member Dixon: • Utilized a presentation to invite residents to the Civic Engagement Forum on March 31, 2022 at 5:00 p.m. in the Civic Center Community Room • Introduced her grandsons, Walker and Brooks Tompkins, and her husband, Pat • Requested a future agenda item to direct staff to monitor cities with fractional ownerships and report back to the City Council in six months Volume 65 - Page 278 City of Newport Beach City Council Meeting March 22, 2022 Council Member Brenner: • Along with Council Member O'Neill, attended the Solid Waste Recycling City Council Working Group meeting and announced a Study Session in April to provide an update on the refuse program • Attended the Orange County Mosquito and Vector Control Trustee and Public Relations meetings Council Member Avery: • Attended the Orange County Sanitation District (OCSD) administration meeting, the Homeless Ad Hoc Committee meeting, and the Finance Committee meeting • Represented the City in the opening of the new Orange Coast College Student Union building Mayor Pro Tem Blom: • Attended the Finance Committee meeting, a regatta in Long Beach with the Newport Aquatic Center (NAC), and the Balboa Island undergrounding vault installation • Thanked the Utilities and Public Works Departments for their work on Pacific Coast Highway (PCH) Mayor Muldoon: • Utilized a presentation to announce the Compost Giveaway, Paper Shredding, E -Waste Disposal, and Organics Kitchen Pail Pick -Up on April 9, 2022, from 8;00 a.m. to noon • Requested a future agenda item to consider adopting a resolution requesting that State legislature suspend the gas tax, to provide immediate relief to Californians who are paying historically high gas prices XIII. MATTERS WHICH COUNCIL MEMBERS HAVE ASKED TO BE PLACED ON A FUTURE AGENDA • Consider reviewing Newport Beach Municipal Code Section 5.46 regarding film permits [Council Member Dixon] The City Council unanimously concurred to bring the item back at a future meeting. XIV. PUBLIC COMMENTS ON CONSENT CALENDAR Council Member Brenner requested that the March 8, 2022 minutes (Item 1) note that she attended the memorial service for Officer Vella and be amended to incorporate Jim Mosher's change regarding her statement about the fair and equitable treatment of all parties when leasing out public space. In response to a question by Mayor Muldoon regarding possible conflicts related to Item 11 (Agreement for Pay -By -Cell and Parking Reservation Services), City Attorney Harp announced that Council Members do not have conflicts related to this item because the matter falls within the public generally exception. Jim Mosher questioned the area being assigned to District 1 in the City Council districting map (Item 4). XV. CONSENT CALENDAR READING OF MINUTES AND ORDINANCES 1. Minutes for the March 8, 2022 City Council Meeting [100-2022] Waive reading of subject minutes, approve as amended, and order filed. 2. Reading of Ordinances Waive reading in full of all ordinances under consideration and direct the City Clerk to read by title only. Volume 65 - Page 279 City of Newport Beach City Council Meeting March 22, 2022 ORDINANCE FOR INTRODUCTION 3. Ordinance No. 2022-9: Amending the Newport Beach Municipal Code Pertaining to Raft -Ups, Live-Aboards, On -Shore Moorings, and Other Miscellaneous Provisions [100- 20221 Continue to the April 12, 2022 City Council Meeting. Council Member Duffield recused himself on Item 3 due to business interest conflicts. ORDINANCES FOR ADOPTION 4. Ordinance No. 2022-7: City Council Districting Map (PA2021-035) [100-20221 a) Find this project statutorily exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because this action will not result in a physical change to the environment, directly or indirectly; and b) Conduct second reading and adopt Ordinance No. 2022-7, An Ordinance of the City Council of the City of Newport Beach, California, Changing and Redefining the City Council District Boundaries as a Result of the United States Census Bureau's 2020 Census. 5. Ordinance No. 2022-8: Amendment Authorizing Staff to Extend the Time to Complete Construction for One -Unit and Two -Unit Dwellings [100-20221 a) Find this project statutorily exempt from the California Environmental Quality Act (CEQA) pursuant to Section 21080.17 of the Public Resource Code and Section 15282(h) of the CEQA Guidelines, which states that the adoption of an ordinance regarding second units to implement the provisions of Sections 65852.1 and 65852.2 of the Government Code are exempt from the requirements of CEQA; and b) Conduct second reading and adopt Ordinance No. 2022-8, An Ordinance of the City Council of the City of Newport Beach, California, Amending Section 15.02.095 of the Newport Beach Municipal Code Authorizing an Extension of the Time Limit to Complete Construction for an Additional Year. Mayor Muldoon and Mayor Pro Tem Blom voted "no" on Item 5. CONTRACTS AND AGREEMENTS 6. Slurry Seal Program (Project No. 21R04) — Notice of Completion for Contract No. 7893-1 [381100-20221 a) Accept the completed work and authorize the City Clerk to file a Notice of Completion for the project; b) Authorize the City Clerk to release the Labor and Materials Bond 65 days after the Notice of Completion has been recorded in accordance with applicable portions of Civil Code; and c) Release Faithful Performance Bond one year after acceptance by the City Council. 7. Mission Bay Drive Street Improvements — Notice of Completion for Contract No. 7889-3 (211103) [381100-20221 a) Accept the completed work and authorize the City Clerk to file a Notice of Completion for the project; b) Authorize the City Clerk to release the Labor and Materials Bond 65 days after the Notice of Completion has been recorded in accordance with applicable portions of Civil Code; and c) Release Faithful Performance Bond one year after acceptance by the City Council. 8. Central Library Boiler and Civic Center Hot Water Heater Replacement Project — Award of Contract No. 8730-1 (20F02) [381100-20221 a) Find this project exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15301 Class 1 (maintenance of existing public mechanical equipment) of the CEQA Guidelines, because this project has no potential to have a significant effect on the environment; Volume 65 - Page 280 City of Newport Beach City Council Meeting March 22, 2022 b) Approve the project plans and specifications; c) Award Contract No. 8730-1 to F.M. Thomas for the total bid price of $171,176, and authorize the Mayor and City Clerk to execute the contract; and d) Establish and encumber a contingency of $17,824 (approximately 10 percent of the total bid) to cover the cost of unforeseen work not included in the original contract. 9. Alley Reconstruction (AD -116, 116B & F Street Areas) - Award of Contract No. 7976-1 (22R07) [38/100-2022] a) Find this project exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15301 (repair and maintenance of existing highways and streets, sidewalks, and gutters involving no expansion of use) of the CEQA Guidelines, because this project has no potential to have a significant effect on the environment; b) Approve the project plans and specifications; c) Award Contract No. 7976-1 to IE Engineering Inc. for the total bid price of $621,688, and authorize the Mayor and City Clerk to execute the contract; and d) Establish and encumber a contingency of $62,000 (approximately 10 percent of the total bid) to cover the cost of unforeseen work not included in the original contract. Mayor Muldoon recused himself on Item 9 due to potential business interest conflicts. 10. Superior Avenue Pedestrian/Bicycle Bridge and Parking Lot (Project No. 15T09) - Approval of Professional Services Agreement with Ardurra (Contract No. 8020-6) and Amendment No. Two with Dokken Engineering (Contract No. 8020-5) [38/100-2022] a) Determine this action is exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because this action will not result in a physical change to the environment, directly or indirectly; b) Approve a Professional Services Agreement with Ardurra of Newport Beach, California, for the Superior Avenue Pedestrian/Bicycle Bridge and Parking Lot project at a not -to -exceed price of $1,250,146, and authorize the Mayor and City Clerk to execute the Agreement; and c) Amendment No. Two to Professional Services Agreement with Dokken Engineering of San Diego, California, for the Superior Avenue Pedestrian/Bicycle Bridge and Parking Lot project to increase the total not -to -exceed amount by $125,116 for a total not -to -exceed amount of $2,015,006, and authorize the Mayor and City Clerk to execute the Amendment. Mayor Muldoon recused himself on Item 10 due to potential business interest conflicts. 11. Amendment No. Four to Professional Services Agreement with Parkmobile, LLC for Pay -By -Cell and Parking Reservation Services (C-7079-1) [38/100-2022] a) Determine this action is exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because this action will not result in a physical change to the environment, directly or indirectly; b) Approve Amendment No. Four to extend the Agreement termination date to March 31, 2023, and add $116,000 to the not -to -exceed amount; and c) Authorize the City Manager and City Clerk to execute Amendment No. Four to the Agreement. MISCELLANEOUS 12. Planning Commission Agenda for the March 17, 2022 Meeting [100-2022] Receive and file. 13. Acceptance of Donations for the Police, Fire and Library Departments from the Dorothy Arens Ressel Trust [100-2022] a) Determine this action is exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because this action will not result in a physical change to the environment, directly or indirectly; and Volume 65 - Page 281 City of Newport Beach City Council Meeting March 22, 2022 b) Accept donations from the Dorothy Arens Ressel Trust for the benefit of the Police, Fire and Library Departments that in total are anticipated to equal or exceed $120,000, and authorize the City Manager to take any actions necessary to accept these donations. 14. 2021 Annual General Plan and Housing Element Progress Report (PA2007-195) [100-20221 a) Find the preparation, review and submission of the 2021 General Plan Progress Report not subject to the California Environmental Quality Act (CEQA) as the actions are not a project as defined by Section 15378(b)(2) of the Public Resources Code; b) Review the 2021 General Plan Progress Report, including the Housing Element Annual Progress Report; and c) Authorize the submittal of the 2021 General Plan Progress Report to the California Office of Planning and Research and the submittal of the Housing Element Annual Progress Report to the State Department of Housing and Community Development. Motion by Mayor Pro Tem Blom, seconded by Council Member O'Neill, to approve the Consent Calendar; and noting the recusal by Council Member Duffield to Item 3, the recusals by Mayor Muldoon to Items 9 and 10, the "no" votes by Mayor Muldoon and Mayor Pro Tem Blom to Item 5, the amendments to Item 1, and the continuance of Item 3. The motion carried unanimously. XVI. ITEMS REMOVED FROM THE CONSENT CALENDAR — None XVII. PUBLIC COMMENTS ON NON -AGENDA ITEMS Lynn Swain expressed her opposition to Measure B on the June 7, 2022 ballot. City Attorney Harp reminded speakers that campaigning at City Council meetings is not allowed. Nancy Scarbrough reported on a Regional Housing Needs Assessment (RHNA) audit by the California Alliance of Local Electeds and noted a discrepancy in the resident counts. XVIII. PUBLIC HEARING 15. Resolution Nos. 2022-19 and 2022-20: Land Use Entitlements for the Residences at 1300 Bristol Project (PA2021-161) [100-20221 Community Development Director Jurjis and Associate Planner Crager utilized a presentation to review the residences at 1300 Bristol Street project, map, project description, transfer of development rights, Development Standard waiver requests, incentive requests, and the project consistency relative to City zoning and State laws. Ken Picerne, President and CEO of The Picerne Group, utilized a presentation to review the multifamily project, reviewed the One Uptown Newport project, and noted the project will have 169 market rate rental units and 24 affordable housing units. Amanda Tropiano, Principal of De Novo Planning Group, Irwin Yau, Principal at TCA Architects, and Matt Jackson, Vice President of MJS Landscape Architecture, utilized a presentation to highlight the project, the project team, Picerne Group's background, One Uptown Newport, the vicinity map, existing conditions, project context map, the project design, site plan, project perspectives from Bristol and Spruce Streets, elevations, building sections, materials, the lifestyle imagery, composite landscape plan, ground level view, podium level view, roof deck amenities, and examples of amenity and plant imagery. Ms. Tropiano continued the presentation to review community letters of support, project benefits, and The Picerne Group's commitment to the community through addressing housing needs, supporting local businesses, and respecting the community. Volume 65 - Page 282 City of Newport Beach City Council Meeting March 22, 2022 Council Member Dixon expressed how impressed she is by the investments in the City from The Picerne Group and her interest in greater park space. In response to Council Member Dixon's question, Mr. Picerne confirmed he is a Newport Beach resident and shared his excitement for helping the City realize its vision. In response to Council Member Avery's questions, Associate Planner Crager reported that there will be about $2 million in park fees and $3 million in public benefit fees for the 77 transferred units that are subject to change. Council Member Avery discussed the project scale, The Picerne Group's track record in the City, the need for affordable very low and low-income housing, and market rate housing. Council Member Duffield discussed the support from a Santa Ana Heights resident. Mayor Muldoon opened the public hearing. Jim Mosher commented on the Newport Place planned residential community, questioned whether zoning incentives should apply to a market rate project at the 15% amount, and noted the small aircraft flight paths used to avoid Santa Ana Heights. Hearing no further testimony, Mayor Muldoon closed the public hearing. Motion by Mayor Muldoon, seconded by Council Member O'Neill, to a) adopt Resolution No. 2022-19, A Resolution of the City Council of the City of Newport Beach, California, Adopting Addendum No. 5 (ER2022-001) to the 2006 General Plan Update Program Environmental Impact Report and 2008-2014 City of Newport Beach Housing Element Update Initial StudylNegative Declaration for the Residences at 1300 Bristol Street Project Located at 1300 North Bristol Street (PA2021-161); and b) adopt Resolution No. 2022-20, A Resolution of the City Council of the City of Newport Beach, California, Approving Site Development Review No. SD2021-003, Affordable Housing Implementation Plan No. AH2O22-001, Traffic Study No. TS2022-001, and Transfer of Development Rights No. TD2022-001 for the Residences at 1300 Bristol Project Located at North 1300 Bristol Street (PA2021-161). The motion carried unanimously. XIX. CURRENT BUSINESS 16. Appointment to the Building and Fire Board of Appeals to Fill an Unscheduled Vacancy [241100-20221 City Clerk Brown read the ballot votes as follows: Michael Manning — Mayor Muldoon, Mayor Pro Tem Blom, Council Member Avery, Council Member Brenner, Council Member Dixon, Council Member Duffield, and Council Member O'Neill City Clerk Brown announced that Michael Manning was appointed to the Building and Fire Board of Appeals for a term that expires on June 30, 2023. 17. Resolution No. 2022-21: Seventh Amended and Restated Employment Agreement for City Attorney (C-7034-5) [381100-20221 City Attorney Harp recused himself due to personal financial effect conflicts. Volume 65 - Page 283 City of Newport Beach City Council Meeting March 22, 2022 Human Services Director Salvini mentioned the current City Attorney employment agreement effective January 26, 2021, and provided an overview of the terms and conditions of the proposed agreement through December 20, 2028, including a five percent merit adjustment upon the effective date, cost of living adjustments tied to those received by executive management employees beginning January 2023 and each January thereafter, deferred compensation for City contributions to a 401(a) account as of the agreement's effective date in the amounts of $14,500 with an increase of $2,500 in January of each year for the remainder of the employment agreement term, and severance provisions if terminated without cause providing a cash settlement from the City equal to the monthly salary multiplied by the number of remaining months on the unexpired agreement term subject to conditions. Jim Mosher noted the change in the contract's term length and suggested a severance provision cap of six months. In response to Mayor Muldoon's questions, Human Resources Director Salvini clarified the severance provision as per the Government Code, clarified an 18 -month maximum provision, and reported there would be an 18 month severance provision if terminated without cause before March 22, 2026, and a 12 month severance provision after March 22, 2026. Motion by Council Member O'Neill, seconded by Council Member Dixon, to a) determine this action is exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because this action will not result in a physical change to the environment, directly or indirectly; b) approve and authorize the Mayor to execute a Seventh Amended and Restated Employment Agreement between the City of Newport Beach and City Attorney Aaron C. Harp, subject to the terms and conditions approved by the City Council; c) adopt Resolution No. 2022-21, A Resolution of the City Council of the City of Newport Beach, California, Modifying the Salary Range for the City Attorney; and d) approve Budget Amendment No. 22-047 appropriating $5,303 from unappropriated General Fund balance to various salary and benefit accounts to implement the terms of the Agreement for the remainder of FY 2021-22. The motion carried unanimously XX. MOTION FOR RECONSIDERATION — None XXI. ADJOURNMENT — Adjourned at 6:50 p.m. in memory of Andrew Dossett III The agenda was posted on the City's website and on the City Hall electronic bulletin board located in the entrance of the City Council Chambers at 100 Civic Center Drive on Volume 65 - Page 284